NPS Traders: National Pension Scheme for Traders and Self-Employed Persons

National Pension Scheme for Traders and Self-Employed Persons. NPS for Traders and Self Employed Persons is a government scheme meant for old age protection and social security of Shopkeeper’s, Retail traders and Self Employed persons. National Pension Scheme for Shopkeepers, Traders, and the Self-employed Persons or NPS Traders Yojana is a govt scheme meant for old age protection and social security of Small Scale Traders and Retailers.

Vyaparis, who are self-employed and are working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Vyaparis with similar occupations whose annual turnover does not exceed Rs 1.5 crore are eligible to get benefit under the scheme.

The NPS Traders scheme is a Social Security Welfare Scheme and it meant for old age protection and social security of retail traders/ shopkeepers and self-employed persons whose annual turnover is not exceeding Rs. 1.5 crore. These retail traders/ shopkeepers and self-employed persons are mostly working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Laghu Vyaparis.

National Pension Scheme for Traders and Self-Employed Persons
Name of the SchemeNational Pension Scheme for Traders and Self-Employed Persons
TitleCheck the National Pension Scheme for Traders and Self-Employed Persons
SubjectGovt Of India launched the NPS Traders Scheme
CategoryScheme
Websitehttps://www.india.gov.in/
Schemes PortalNPS Traders
Online Self Enrollmentself enrollment online
NPS Traders Scheme Details

It is a voluntary and contributory pension scheme under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension is applicable only to spouse.

  • On the maturity of the scheme, an individual will be entitled to obtain a monthly pension of Rs. 3000/-. The pension amount helps pension holders to aid their financial requirements.
  • The scheme is a tribute to the workers in the Unorganized sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).
  • The applicants between the age group of 18 to 40 years will have to make monthly contributions ranging between Rs 55 to Rs 200 per month till they attain the age of 60.
  • Once the applicant attains the age of 60, he/ she can claim the pension amount. Every month a fixed pension amount gets deposited in the pension account of the respective individual.

Eligibility Criteria for NPS-Traders

  • For self employed shop owners, retail owners and other vyaparis
  • Entry age between 18 to 40 years
  • Annual turnover should not exceed Rs 1.5 crore

Features of NPS-Traders

  • Assured Pension of Rs. 3000/- month
  • Voluntary and Contributory Pension Scheme
  • Matching Contribution by the Government of India

Benefits of NPS-Traders

Benefits to the family on death of an eligible subscriber: During the receipt of pension, if an eligible subscriber dies, his spouse shall be only entitled to receive fifty per cent of the pension received by such eligible subscriber, as family pension and such family pension shall be applicable only to the spouse.

Benefits on disablement: If an eligible subscriber has given regular contributions and become permanently disabled due to any cause before attaining his age of 60 years, and is unable to continue to contribute under this Scheme, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by such subscriber, with interest as actually earned thereon by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.

Benefits on Leaving the Pension Scheme

  1. In case an eligible subscriber exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon.
  2. If an eligible subscriber exits after completion of a period of ten years or more from the date of joining the Scheme by him but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
  3. If an eligible subscriber has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such subscriber along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
  4. After death of subscriber and his or her spouse, the corpus shall be credited back to the fund.

Monthly Contribution for NPS Traders

Entry age specific monthly Contribution by the retail traders/ shopkeepers and self-employed personsThrough ‘auto-debit’ facility from his/ her savings bank account/ Jan-Dhan account from the date of joining NPS-Traders till the age of 60 years as per the chart below. The Central Government will also give equal matching contribution in his pension account.

Entry AgeSuperannuation AgeMember’s monthly contribution (Rs)Central Govt’s monthly contribution (Rs)Total monthly contribution (Rs)
ABCD(Total = C + D)
186055.0055.00110.00
196058.0058.00116.00
206061.0061.00122.00
216064.0064.00128.00
226068.0068.00136.00
236072.0072.00144.00
246076.0076.00152.00
256080.0080.00160.00
266085.0085.00170.00
276090.0090.00180.00
286095.0095.00190.00
2960100.00100.00200.00
3060105.00105.00210.00
3160110.00110.00220.00
3260120.00120.00240.00
3360130.00130.00260.00
3460140.00140.00280.00
3560150.00150.00300.00
3660160.00160.00320.00
3760170.00170.00340.00
3860180.00180.00360.00
3960190.00190.00380.00
4060200.00200.00400.00
Monthly Contribution for NPS Traders
  • Should not be Covered under any National Pension Scheme contributed by the Central Government or member of EPFO/NPS/ESIC.
  • Should not be an income tax payer.
  • Should not be Enrolled under Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Labour & Employment or Ministry of Agriculture & Farmers Welfare, respectively.
  • He/ She should possess Aadhaar card and Savings Bank Account number with IFSC

How to Apply for NPS Traders Scheme

  • Interested eligible person shall visit nearest CSC centre.
  • Following are the prerequisites for the enrollment process:
    • Aadhaar Card
    • Savings/Jan Dhan Bank Account details along with IFSC Code ( Bank Passbook or Cheque Leave/book or copy of bank statement as evidence of bank account ).
  • Initial contribution amount in cash will be made to the Village Level Entrepreneur (VLE).
  • The VLE will key-in the Aadhaar number, Name of subscriber and Date of birth as printed on aadhaar card for authentication.
  • The VLE will complete the online registration by filling up the details like Bank Account details, Mobile Number, Email Address, GSTIN, Annual Turnover Income, Spouse (if any) and Nominee details.
  • Self-certification for eligibility conditions will be done.
  • System will auto calculate monthly contribution payable according to age of the Subscriber.
  • Subscriber will pay the 1st subscription amount in cash to the VLE.
  • Enrollment cum Auto Debit mandate form will be printed and will be further signed by the subscriber. VLE will scan the same and upload it into the system.
  • A unique Vyapari Pension Account Number (VPAN) will be generated and Vyapari Card will be printed.
SchemeSocial Security Welfare Schemes
NPS TradersNational Pension Scheme for Traders and Self-Employed Persons Yojana
APYAtal Pension Yojana
PMSBYPradhan Mantri Suraksha Bima Yojana
PMJJBYPradhan Mantri Jeevan Jyoti Bima Yojana
PMJDYPradhan Mantri Jan Dhan Yojana
PM SYMPradhan Mantri Shram Yogi Maandhan Yojana
Social Security Welfare Schemes
  1. What are the features of NPS Traders Yojana?

    NPS-Traders Yojana is a voluntary and contributory pension scheme, under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension is applicable only to spouse.

  2. What is National Pension Scheme for Traders and Self Employed Persons Yojana

    National Pension Scheme for Traders and Self Employed Persons Yojana is a voluntary and contributory Government Pension Scheme for Vyaparis, retail traders, shopkeepers and self-employed persons, with annual turn-over not exceeding Rs.1.5 crore. Entry age is 18 to 40 years. The scheme is implemented by Ministry of Labour & Employment, Government of India. The scheme has been notified vide its S.O 2615E, dated 22.02.2019.

  3. Who can subscribe NPS Traders Scheme?

    Any retail trader, shopkeepers and self-employed person with annual turn-over not exceeding Rs.1.5 crore, in the age group of 18-40 year can subscribe this Scheme. They should not be an income tax payer or a member of National Pension Scheme (NPS – GOVT FUNDED), Employees’ State Insurance Corporation scheme (ESIC) and Employees’ Provident Fund Organization (EPFO) and Pradhan Mantri Shram Yogi Maandhan.

  4. What is the benefit of the NPS Traders Scheme?

    NPS Traders is a social security/old age protection scheme for Vyaparis. Subscriber will get a minimum assured monthly pension of Rs. 3000/- after attaining the age of 60 years. During the receipt of the pension, if subscriber dies, her/his spouse will receive a monthly family pension equivalent to 50 % of the subscriber pension.

  5. How many years the beneficiary will contribute?

    Once beneficiary joins the scheme at the entry age between 18-40 years, she/he has to continuously contribute till she/he attains the age 60 years.

  6. How much pension would be received under the NPS Traders scheme? At what age?

    Under the Scheme, a minimum monthly assured pension of Rs. 3000/- will commence after the subscriber attains the age of 60 years.

  7. How can on join the NPS Traders scheme?

    Under the scheme, the subscriber may visit the nearest Common Service Centre and get enrolled in the scheme using her/his Aadhar number and savings bank account/Jan-Dhan account number on self-certification basis. Nearest Common Service Centres (CSCs) can be located at locator.csccloud.in/.

*Disclaimer: We have published the above information for reference Purpose only, For any changes on the content we refer to visit the Official website to get the latest & Official details, and we are not responsible for anything

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